EXPLANATORY NOTES 1.Operational Context | 2. Benefit Plans | 3. Presentation of the Financial Statements | 4. Relevant Fact |
5. Main Accounting Practices | 6. Receivables - Pension Program | 7. Receivables - Investment Program | 8. Fixed Income | 9. Variable Income | 10. Real Estate Investments | 11. Operations with Participants |
12. Investments - PREVI Futuro Plan | 13. Investments - Annuity Portfolio - CAPEC | 14. Operating Liabilities | 15. Contingency Liabilities | 16. Actuarial Liabilities | 17. Mathematical Provisions - Benefit Plan 1 | 18. Mathematical Provisions - PREVI Futuro | 19. Technical Balance | 20. Found | 21. Income Statement
PRESENTATION OF THE FINANCIAL STATEMENTS

The 2006 Financial Statements were prepared in accordance with the accounting practices adopted in Brazil and in accordance with CGPC Resolution No. 5 dated 01/30/02, and its later amendments, following uniform principles, methods and criteria in relation to the financial statements of the last fiscal year.

The consolidated financial statements include the balances of the Entity accounts (Administrative Program) and of the Benefit Plan 1, PREVI Futuro and Annuity Portfolio. Each plan has its accounting system structured in three programs: Pension Program, Administrative Program and Investment Program.